Regional policy and investment behaviour: The case of Greece, 1971-1982
AbstractThe present paper reports an attempt to evaluate the relative effects of regional policy on investment in Greek manufacturing industry during 1971-82. A generalized neoclassical model of investment behaviour is used allowing for separate estimates of the effects of different policy instruments. Both regional investment incentives and infrastructure expenditures were found to exert a significant influence on capital formation. Simulations with alternative policy cornbinations showed that if incentives were accompanied by more equally distributed infrastructure expenditures the cost of the policy would be the same but its effects would be enhanced: an equal amount of investment would be created with a fairer regional distribution.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 40229.
Date of creation: 1989
Date of revision:
Regional policy; Investment; Incentives; Greece; Manufacturing;
Find related papers by JEL classification:
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
- L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
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